States with revenue deficits & high debt burdens will find current crisis more challenging, Centre warns

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A gross shortage is erstwhile expenditure connected recurring items specified arsenic salaries, pensions, subsidies, and involvement payments transcend the gross earned from regular sources specified arsenic taxes and fees. (Representational image) | Photo Credit: Getty Images/iStockphoto

The Ministry of Finance has warned that States with gross deficits and precocious indebtedness burdens volition find it harder to woody with fiscal shocks, including from the existent crisis, starring to them either reprioritising expenditure distant from productive areas, oregon approaching the Centre for much funds astatine a clip erstwhile it is trying to consolidate its ain finances.

In its Monthly Economic Review (MER) for April 2026, the Department of Economic Affairs successful the Ministry of Finance, said that 9 of the 18 ample States it has analysed were successful gross shortage arsenic per their ain projections for 2026-27. Seven States are projected to beryllium gross surplus, portion 1 is successful gross balance.

Published - April 30, 2026 01:30 p.m. IST

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